Links in “Fines, Penalties, Suits, and Settlements”

The Wall Street Journal is reporting that Mastercard is ready to enter into a settlement with Target to recover costs that card issuers suffered from the retailer’s massive data breach.  Those familiar with the negotiations are reporting that the amount of the settlement could be in the $20 million range. [4/15/15]

PayPal's recent settlement with the Office of Foreign Asset Control (OFAC) stands as a reminder of the importance for all financial institutions to maintain an adequate sanctions compliance program. PayPal's settlement of $7,658,300 was mainly from processing payments of an individual involved in a nuclear proliferation network. [4/15/15]

Two debt brokers have agreed to settle Federal Trade Commission charges that they exposed sensitive information of over 55,000 consumers to potential buyers. As part of the settlement, the firms must institute programs to protect the consumer information. [4/14/15]

The fine itself, $250,000, against a California mortgage lender may not have been huge, but the CFPBs action got plenty of coverage, helping to send a clear signal: don't imply a government agency affiliation in your marketing materials. See coverage here and here and here. [4/10/15]

The CFPB took action against RMK Financial Corporation (aka Majestic Home Loans) for deceptive mortgage advertising practices, including sending over 100,000 ads that led consumers to believe that the company was affiliated with the U.S. government via the VA. RMK ordered to pay penalty of $250,000 and end the illegal practice. [4/10/15]

For those credit unions who received fines because they filed their 5300 Call Report after the due date, the irony of this story should be apparent.  NCUA, for the 3^rd year in a row, has missed the April 1^st deadline for filing its annual report to Congress on agency operations. [4/6/15]

A settlement with Linden Financial Group was made today for the price of $28.6 million. Linden Financial Group was caught soliciting mortgage and debt relief scams back in June 2014. [4/6/15]

Now sentenced to three years in federal prison, the former Operations Manager of the $22 million Georgia Power Valdosta FCU put in place a clever scheme that managed to hide her fraudulent transactions while working for the credit union and for three years after she left employment with the credit union. [4/3/15]

Sometimes, the bad guys are just asking for it. The FTC has shut down FTC Credit Solutions, a credit repair company that attempted to deceive consumers by implying an affiliation with the FTC. [3/30/15]

"Advice you can trust." That was the caption beneath a life-size poster of an investment advisor in a Virginia credit union's lobbies last year. The poster is now gone and the investment advisor has just been sentenced to 10+ years for bilking millions of dollars from 20 credit union members. [3/25/15]